Do you need car insurance?

Auto insurance is essential if you’re a vehicle owner. It protects you from liability if you make a mistake, and it protects your car if it’s damaged by another person. If you don’t have car insurance, not only are you breaking the law, you’re risking your financial well-being. Here’s how to get it:

How to Shop for Car Insurance

When shopping for car insurance, take it one step at a time.

1. See what your state requires you to have.
2. Determine what you can afford beyond the minimum.
3. Decide what kind of coverage you want.
4. Get some price quotes and look for the right policy.

Coverage Types

To better understand what type of car insurance policy you should get, it is best to start by knowing what types of coverage there are out there.

• Collision is your insurance protection in the event of a car accident. It cover any damage your car sustains.
• Comprehensive will cover damage to your car that is not the result of an accident. If your car gets weather damage or is vandalized or stolen then this comprehensive plan will cover your losses.
• Medical Coverage covers medical expenses from a car accident, even if you are at fault.
• Personal Injury Protection is actually required in some states, so be sure to check if your state is one. PIP will pay for medical treatment after a car accident for the driver, regardless of fault.
• Rental Reimbursement is added coverage that will pay for a rental car if your car is in the shop due to accident-related damage.
• Uninsured Motorist will pay for damages resulting from an accident with an uninsured motorist. If you get into an accident with someoe who had no insurance, you may end up paying your full deductible even if you were not at fault.

The above coverage types can be packaged together in many different ways. They can be mixed and matched to make the best policy for you.

Pricing

The price of your car insurance plan can vary greatly from company to company. However, there are some factors that all insurance providers will take into account when calculating your policy price.

• Your Car
• The type of car you drive is going to greatly impact your price. Most every company will have a sliding scale for policy costs based on the make, model, mileage, age and value of the vehicle.
• Where You Live
• Your location is also going to be a determinate of your policy price. Relevant factors include crime rates, accident rates, the state, and whether you live in an urban area.
• Driving Habits and You
• Your driving habits will also be considered in the price calculation. Some companies will charge more if you drive a lot or have to commute every day.
• Your official driving record might come into question. An extensive history of traffic violations and accidents will affect the rate you get.
• Age, gender and martial status will also be taken into account. For example, younger drivers have a higher accident rate and so most people under the age of 25 will have higher rates.

Deals – A lot of providers will also give special deals, like the ones you see in advertisements. Some are just a small break, but it never hurts to shop around to look for the best promotions.

Once you get your car insurance, make sure you register your vehicle.